Today, it is impossible to know whether a credit card presented for payment is in truth the credit card of the particular customer who is effecting the purchase; in other words, that the person presenting the card is its rightful owner.
At the time of effecting a transaction by means of a credit card at locations where a magnetic card reader is used, the card is passed through the reader and its details are communicated to the credit company. The credit company checks whether the card is in force, if the card was cancelled, if the card owner's bank approves the transaction at the indicated cost, and sometimes also other reasonable details of the purchase. This investigation does not provide a solution for cases in which the credit card is stolen, to the extent that the credit company does not yet know that the card was stolen. A credit company will approve a transaction using a stolen credit card, when it has not yet been informed that the card was stolen. In addition, credit cards are available upon which the owner's picture is printed; however, these cards are not protected, they can be counterfeited, and the cost of producing them is high.
The limited “self-defense” means of the credit company is usually considered to be the visual check of the salesperson collecting the payment, verifying that the signature of the purchaser conforms with the owner's signature sample on the card. Such verification is very limited, as it relies upon the motivation of the salesperson and enables no performance supervisory control by the credit company.
U.S. Pat. No. 3,569,619 discloses a verification system using coded identifying and storage means having a credit card company data storage and communication unit for recording and storing data concerning authorized credit card holders, including an electronically reproducible image for each credit card holder. Means are provided for introducing the image into the company's data storage unit. At least one remotely positioned credit card reader and image display means is also provided, communicating with the company data storage unit, for selectively retrieving data from the storage unit to be displayed on the image display means and to be viewed and approved by the sales person.
U.S. Pat. No. 5,095,196 is directed to a security system having imaging functions, constituting an access control system for examining a passer having an ID card including a photograph and key data for searching registered data of the passer.
WO 93/11511 also discloses personal identification devices and access control systems.